The aggregate supply curve would shift downward if
a. unit costs increase due to an increase in output
b. the wage rate increases
c. good weather increases crop yields
d. an increase in real GDP causes the price level to decrease
e. an oil embargo causes world oil prices to rise
C
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Briefly explain the difference between the concepts of scarcity and shortage
What will be an ideal response?
For a macroeconomist, the case for aggregation is based on two principles?1) the composition of demand and supply may not matter for some purposes, and 2)
a. during fluctuations markets normally move together. b. individual markets allocate resources efficiently. c. inflation, unemployment, and growth never go together. d. individual markets distribute income efficiently.
When a new deposit is made at a bank, required reserves represent the fraction of total deposit that the bank can loan out to borrowers
Indicate whether the statement is true or false
Firms with market power must decide all of the following except
A. how to produce it. B. how much to supply in each input market. C. what price to charge for their output. D. how much to produce.